Wall Street slides as trade talks resume

US indices closed slightly lower after a volatile session yesterday as the US and China sat down for the first face-to-face trade talks in two months. EU’s Juncker said that he was prepared to remove the so-called backstop from a withdrawal agreement, so long as all of the EU’s objectives are met.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index edged lower for the first time in three days yesterday

• The 55-day moving average has edged up to 26,613, with prices trading above it since September 5

• A Trump adviser said the President is prepared to increase pressure on China if trade deal is not agreed to soon. It’s a slow finish to the week on the data front, with the only item on the calendar a speech from Fed’s Rosengren.

DE30EUR Daily Chart

Source: OASNDA fxTrade

• The Germany30 index has started positively this morning, possibly setting up a third consecutive daily gain

• The 100-day moving average is at 12,115 and has supported prices since September 6. The 55-day moving average is just below at 12,078

• The provisional reading for the Euro-zone’s consumer confidence is expected to slip to 7.0 in September from 7.1 last month, according to the latest survey of economists.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index saw wild swings yesterday before closing little changed amid rising hopes for progress toward a Brexit deal

• The index has so far failed to overcome resistance at the convergence of the 100- and 55-day moving averages at 7,345.2 and 7,348.7 respectively. The 55-day moving average has capped prices on a closing basis since August 1

• The Bank of England held rates at yesterday’s meeting, as expected. The Bank releases its Quarterly Bulletin today. Progress toward a Brexit deal seems possible after Juncker’s comments on the back-stop situation, which could help sentiment.